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Coins are generally graded according to the Sheldon scale, which is demonstrated below.  Coins are graded on a scale of 1 to 70, 1 being a barely recognizable coin and 70 being a perfectly struck new uncirculated coin.

Grading Lincoln Cents

Grade	Description	Sample Images
P-1 (Poor)	Damaged and barely identifiable
FA-2 (Fair)	Very little detail throughout, but date must be recognizable
AG-3 (Almost Good)	Worn into rims, some lettering not legible
G-4 to G-6 (Good)	Very little if any details to hair, Lincoln head somewhat flat.  Rims may be worn into edge of lettering, no lines in wheat stalks visible
VG-8 to VG-10 (Very Good)	Some roundness to Lincoln's head, some minor hair detail visible.  Between 40-50% of lines in wheat stalks visible.
F-12 to F-18 (Fine)	More roundness on Lincoln's head with about 50% of hair detail present, fully defined rims, all lines in wheat stalks visible, though may be very weak.
VF-20 to VF-35 (Very Fine)	Approximately 75% of hair detail visible, head well-rounded, lines in wheat stalks complete and visible with naked eye.	(VF-20)
EF-40 to EF-45  (also XF-40 to XF-45)	Most of hair detail evident, full wheat stalk lines visible with very little wear noticible.	(EF-40)
AU-50 (Almost Uncirculated)	Slight wear on high points of hair, may not have luster, bold wheat stalk lines.
AU-58 (Almost Uncirculated)	Wear only noticeable on hair with magnification.  Does not have to exhibit mint luster.
MS-60 (Uncirculated)	Free from any trace of wear, but will exhibit bag marks and other distractions.  Uncirculated coins may or may not exhibit mint luster.  Due to oxidation, many uncirculated lustrous coins tarnish over time.
MS-61 to MS-63 (Brilliant Uncirculated)	Showing moderate bag marks in field, and retaining much original luster
MS-64 (Choice Brilliant Uncirculated)	Showing only light bag marks in field, most mint luster present
MS-65 (Gem Brilliant Uncirculated)	Full mint luster, full strike, slightest of field distractions
MS-66 (Choice Gem Brilliant Uncirculated)	Full strike and luster, imperfections found only with magnifying glass
MS-67 to MS-69 (Extraordinarily Uncirculated Coin)	Full strike and luster, with no noticeable field distractions
MS-70 (Perfect)	Perfection both obverse and reverse, as well as rim -- very few coins reach this grade today; no early coins graded MS-70